ASST.C.I.T., HUBLI vs. M/S BELLAD & CO, HUBLI

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ITA 1281/BANG/2015Status: DisposedITAT Bangalore27 July 2016AY 2012-133 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal followed its previous order in a similar case involving the same assessee. It held that business losses determined prior to the initial year of business should not be set off against business profits determined for the year under consideration for the purpose of deduction under Section 80IA(5).

What were the facts?

The revenue appealed against the CIT(A)'s order deleting a disallowance made under Section 80IA. The core issue was whether prior business losses and depreciation should be set off against the current year's income of a new undertaking for the purpose of Section 80IA deduction.

What were the issues?

The primary issue was the correct computation of profits for deduction under Section 80IA, specifically concerning the set-off of prior business losses and depreciation against the profits of a new undertaking.

Which sections of the Income-tax Act were involved?

Section 80IA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, BANGALORE

Before: SHRI SUNIL KUMAR YADAV & SHRI INTURI RAMA RAO

For Appellant: Shri C.N.Bipin, JCIT(DR)
For Respondent: Shri C.R.Nulvi, CA
Hearing: 04/07/2016Pronounced: 27/07/2016

O R D E R Per INTURI RAMA RAO, AM :

This is an appeal filed by the revenue directed against the order of the CIT(A), Hubli, dated 31/07/2015 for the assessment year 2012-13.

2.

The revenue raised the following grounds of appeal: 1. The order of Ld.CIT(A) is opposed to law and facts of the case.

Page 2 of 3 2. Whether on the facts and in the circumstances of the case and in law, the ld.CIT(A) is correct in deleting the disallowance made u/s 80IA of the Act without considering the fact that the profit from the new undertaking is to be computed as if it is the only business carried out by the assessee from its inception and to allow set off of earlier year’s losses and depreciation against the current year’s income of such unit, even though these amounts have been set off against other income in the earlier years.

3. Any other ground that may be taken during the appeal.

4.

The appellant craves leave to add, alter, amend and delete any of the grounds of appeal.

2. The only ground of appeal

is for the purpose of deduction us/ 80IA(5) of the Income-tax Act,1961 [‘the Act’ for short] whether business losses determined prior to initial year of business should be set off against business profits determined for the year under consideration. This issue was decided in our order of even date in in the case of the same assessee for assessment year 2010-

11. Respectfully following the ratio laid down in that order, this ground of appeal is dismissed.

3.

In the result, the appeal of the revenue is dismissed.

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